Athenahealth (ATHN) has reported 27.27 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $9.80 million, or $0.24 a share in the quarter, compared with $7.70 million, or $0.19 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $25 million, or $0.62 a share compared with $17.80 million or $0.45 a share, a year ago. Revenue during the quarter grew 11.92 percent to $288.20 million from $257.50 million in the previous year period. Gross margin for the quarter expanded 172 basis points over the previous year period to 53.68 percent. Total expenses were 95.70 percent of quarterly revenues, down from 97.40 percent for the same period last year. This has led to an improvement of 170 basis points in operating margin to 4.30 percent.
Operating income for the quarter was $12.40 million, compared with $6.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $42.50 million compared to $31.30 million in the prior year period. At the same time, adjusted operating margin improved 259 basis points in the quarter to 14.75 percent from 12.16 percent in the last year period.
"Our expanding network now connects care across nearly 88,000 providers, nearly 86 million patients, and over 143,000 network endpoints. And, as the largest network in healthcare, our data-driven insights combined with our highly efficient and scalable back office work enables our clients to focus on the health of their patients, not paperwork, expand their market share, and get paid more, faster," said Jonathan Bush, chairman and chief executive officer of athenahealth. "Today, we are more confident than ever about our ability to achieve our vision of building the healthcare internet. Our increasing depth and breadth of product management, technical design and development expertise, combined with our increasing bandwidth to focus on our own strategy versus the government mandates of recent years, should make us even more productive in 2017 as we deepen our services and build out our unique network."
Athenahealth forecasts revenue to be in the range of $1,290 million to $1,330 million for fiscal year 2017. For financial year 2017, the company forecasts operating income to be in the range of $61 million to $81 million. For financial year 2017, the company forecasts adjusted operating income to be in the range of $170 million to $190 million.
Operating cash flow improvesAthenahealth has generated cash of $182.60 million from operating activities during the year, up 11.48 percent or $18.80 million, when compared with the last year. The company has spent $174.90 million cash to meet investing activities during the year as against cash outgo of $199.10 million in the last year.
The company has spent $2 million cash to carry out financing activities during the year as against cash inflow of $103.80 million in the last year period.
Cash and cash equivalents stood at $147.40 million as on Dec. 31, 2016, up 3.88 percent or $5.50 million from $141.90 million on Dec. 31, 2015.
Debt comes down marginally
Athenahealth has recorded a decline in total debt over the last one year. It stood at $291.10 million as on Dec. 31, 2016, down 2.38 percent or $7.10 million from $298.20 million on Dec. 31, 2015. Total debt was 24.48 percent of total assets as on Dec. 31, 2016, compared with 26.66 percent on Dec. 31, 2015. Debt to equity ratio was at 0.46 as on Dec. 31, 2016, down from 0.55 as on Dec. 31, 2015. Interest coverage ratio improved to 11.27 for the quarter from 4.19 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
